Oaktree alums talk Duration Capital and transportation market; Advent pursues CV for Xplor Technologies

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Oaktree alums talk Duration Capital and transportation market; Advent pursues CV for Xplor Technologies

Good morning, Hubsters. Senior reporter Michael Schoeck here with the US edition of the Thursday Wire from the New York newsroom.

First up today is the latest installment of PE Hub’s “Dealmakers to Watch” series on Duration Capital Partners, a middle market private equity and infrastructure investment firm.

Next up we have a scoop from affiliate title Secondaries Investor on Advent International portfolio company Xplor Technologies, a business management software provider said to be pursuing single-asset continuation vehicle funding.

And we’ll round up the Wire with deal news of EIV Capital closing its exit of H20 Midstream, a Midland Basin, Texas water gathering and service provider.

Let’s start off with a Dealmakers to Watch profile in the transportation sector.

On the road again

In July, Duration Capital Partners completed its spinoff from Oaktree Capital Management. Duration is investing in transportation, logistics and infrastructure. I touched base with co-CEO’s Emmett McCann and Josh Connor about the young firm – and the longevity of their partnership – for our Dealmakers to Watch series.

Sign up for the premium version of the Wire to read the full story.

Editor’s note: PE Hub has recently launched a new series of profiles called Dealmakers to Watch. We’re featuring private equity professionals as they pivot to new challenges, such as moving to a new firm, launching a new firm, getting promoted to partner, launching an investment strategy, closing a significant deal or some other new endeavor.

For more in the series, see these articles on PE Hub:

• 'Perpetual demand' for healthcare drove Jo Natauri to launch Invidia

• Vistria’s Natasha Latif sees greater opportunities to make an impact in her new role

• How a chance meeting led Jeff Aiello into a career in private equity

• 'Transformational time in technology' led Chip Schorr to launch Niobrara

Looking to form a new firm or embark on a new endeavor in private equity? Send Dealmakers to Watch pitches to PE Hub editor-in-chief MK Flynn (mk.flynn@pei.group).

Software CV’s heat up

Advent International could soon join a growing cohort of GPs running single-asset continuation vehicles to extend their hold on prized software assets.

The private equity firm is considering a single-asset CV for Xplor Technologies, a provider of business management software, payments solutions and commerce-related technologies, three sources told affiliate title Secondaries Investor’sHannah Zhang, Adam Le and Madeleine Farman.

Sign up for the premium version of the Wire to access the story.

Midstream exit horizon

Delek Logistics Partners, a Brentwood, Tennessee-based midstream energy company, has closed a $230 million deal to acquire H20 Midstream, providing an exit for EIV Capital, a Houston-based energy private equity firm.

Sign up for the premium version of the Wire to read up on more midstream deals from this year.

That’s a wrap for me today. Stay tuned for the Friday Wires, with Irien Joseph delivering the Europe edition and Obey Martin Manayiti serving up the US edition.

Cheers,

Michael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Big news on the private wealth front today: Partners Group and BlackRock have teamed up to launch a model portfolio solution for wealthy individuals, per a statement. The product will provide access to private equity, private credit and real assets in a single portfolio – an offering the firms say is not currently available to the US wealth channel. (Private Equity International)

MPowered Capital, which last year closed a debut fund to invest in diverse and emerging managers, hired Madeline Rodriguez as head of capital formation. Rodriguez joins from Stonepeak, where she worked for nearly five years. Set up in 2021 by CEO Marcia Page, co-founder and co-executive chair of Värde Partners, MPowered is part of a new wave of private market general partners run by seasoned female dealmakers. (Buyouts)

MCI portfolio company eSky hopes to bridge the gap between the size and reputation of storied UK tour operator Thomas Cook, just a few years after the company collapsed, was restructured and then had to battle against the covid-19 pandemic. Michał Górecki, MCI senior investment partner, said the private equity firm sees “big potential” in developing and growing London-HQ’d Thomas Cook in the UK. (Pe Hub)

ICG chief Durteste: We’re putting the brakes on large GP-led deployment. The firm has raised the market's two largest dedicated funds for sponsor-initiated secondaries deals – both of which focus on large concentrated transactions. (Secondaries investor)

Sound Point Capital Management has held a final close of its third direct lending fund on $1.2 billion, its largest direct lending fund to date, Private Debt Investor has learned.

AirTrunk illustrates just how much there is to be gained by infrastructure managers with the right skills to help develop the capital-hungry assets that form the cornerstone of the digital revolution. (Infrastructure Investor)

How is the market faring as we move into the second half of 2024? According to mid-year advisory reports, the secondaries market is looking at a potentially record-breaking finish to 2024. (Secondaries Investor)

Data snapshot: How LGPSs approach social infrastructure. Large UK pension schemes are likely to expect their social impact managers to breakdown impact generated by UK region, per a report from Octopus Investments. (New Priavte Markets)

Fika Ventures, an early-stage business software investor, announced that it has closed its fourth fund at $160 million. The firm, based in Culver City, California, raised the fund quickly, accepting its first commitment on August 23 and closing on $158.5 million from 43 investors on September 9, according to a Reg D filing. (Venture Capital Journal)

They said it

“As transportation specialists, we’re able to draw on the skill sets of operating partners from across the transport spectrum, draw lessons learned from the commonality of their experiences, and use it to add value in the portfolio. The reality is that when you talk safety and operational excellence with an airport company executive, a logistics company executive and an expert in short line railroads, they have a lot of shared knowledge, and a lot they can teach each other.”

— Josh Connor, co-CEO of Duration Capital Partners, said about becoming a transportation-focused private equity investor.